Develop Your Pitch

Before you approach potential investors with your idea, prepare a business plan that includes objective information about the business concept, product or service samples, customer focus group and survey results, marketplace analysis, existing competition, your marketing plan, biographies of key personnel and your budget, sales and profit projections. Draw up your investment proposal, outlining how much money youre seeking, what it will be used for, what you are offering in exchange for the investment, and potential payback and profits. You might offer a percentage of the business or a percentage of the profits. You might offer a limited payback or a perpetual piece of the business. Determine if you are looking for a silent partner or a partner who brings management expertise to the business. The more of your own money or collateral you put up, the less youll have to give away to investors, in terms of profits or ownership.

Friends and Family

Private Equity and Venture Capitalists

Look for venture capital firms or angel investor clubs in your area or industry. Venture capital firms or individual angels look for businesses with potential to provide a large return on an investment. They might ask for a large percentage of the business or some say in the management of operations. Angel investor clubs usually have specific guidelines for those who want to make a pitch at a club meeting. Contact these groups early to learn what youll need to do to make a presentation. Depending on the size of your business and amount of investment you’re seeking, a venture capitalist might want a seat on your board of directors.

Crowdfunding

References

Resources

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